Why married couples need to focus on debt planning for their estate





What do you think would happen if your spouse died, leaving you with a surprise amount of credit card debt – debt that you did not know about? It is likely that you would be on the hook for it, especially if you have joint bank or credit accounts.

This warning isn’t just for elderly couples. All married couples, even young ones, should prepare a debt plan in case the unexpected happens. It is unfortunate, but every day people die suddenly with no warning, and if it happens to be you, you don’t want to saddle your surviving spouse with pesky creditors and tangled finances.

This where a good estate plan can help. To avoid leaving behind a financial mess for your spouse, take some steps now to address credit or debt issues that might arise if one of you passes away unexpectedly. Don’t wait for old age or a serious illness to have this potentially difficult conversation – the sooner you get it over with, the better.

  1. Put together a real estate plan. Work with an experienced, qualified financial planner or estate planning attorney to evaluate your financial situation. This way, neither you nor your spouse will be surprised by unexpected debt if one of you passes away suddenly. It is also good to have a “reality check” regarding your financial situation, so you have time to prepare for the inevitable.
  2. Consider life insurance. If one spouse depends on the other for income, you should consider your overall financial obligations when preparing your estate plan. This could be a good time to talk about life insurance or another way to ensure that spouse isn’t left high and die if the main breadwinner dies.
  3. Phase out your joint accounts. Joint credit and bank accounts can make life easy, but they can be a big liability if one spouse dies with significant financial obligations. Whenever you can, switch over to individual accounts. This will prevent one spouse from being on the hook for the other’s obligations.
  4. Reduce your debt. The best way to avoid debt-related issues after one spouse dies is to get rid of the debt before anything happens. Create a long-term plan to pay off your financial obligations – and stay debt free. Not only will your credit rating thank you, but the surviving spouse will be in a much better financial situation when the day comes that one of you passes away.

While this isn’t a comfortable or enjoyable conversation, facing debt-related challenges head-on is the only way to ensure that a financial mess isn’t awaiting the surviving spouse or your beneficiaries when you pass on.

If you’d like to speak with an experienced estate planning attorney in Pennsylvania about this issue or any other, please contact the Wexford based law office of Shields and Boris today.

Elder Law Offices of Shields and Boris

109 VIP Drive

Suite 200

Wexford, PA 15090

Toll Free: (888) 444-4093

Phone: (724) 934-5044


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